US Fed to give thousand billion dollar thrust to lift the economy
The U.S Central Bank says that it will spend more than a thousand billion dollars in an effort to lift the country out of recession. The Fed will increase its purchase of assets linked to home loans and buy long term government bonds to try to ease the credit markets.
The size of the move surprised investors causing the Dow Jones stock index to jump almost 200 points. The Bank of England has already begun buying government debt to expand money supply known as quantitative easing.
The Federal Reserve said it hopes the measures will boost mortgage lending and the struggling housing market by lowering interest rates on mortgages and other forms of consumer debt.
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